Ask an Advisor: I'm 49 With $500k Saved but Unsure About Retirement Income. What Are My Best Options Without Costly Annuities?

Core Insights - The individual has accumulated $500,000 in savings and plans to retire at age 65, expressing concerns about retirement income sources [2][4] - The 4% rule suggests that the individual can withdraw 4% of their retirement portfolio annually, potentially leading to a sustainable income stream [5][7] - Projections indicate that with current savings and contributions, the individual could have approximately $1,409,757 by retirement, translating to an annual income of $56,390 [7] Financial Projections - The individual earns a $50,000 annual salary and contributes 5% to their 401(k), with a 3% employer match, and assumes a 6% annual investment return [6] - After accounting for 2.1% annual inflation, the inflation-adjusted balance at retirement could be around $1,008,439, yielding an annual income of $40,337 in today's dollars [7] - This projected income is close to the individual's current salary and may adequately replace it, considering their low living expenses [8]